Classify the Gain or Loss on Each of George's Assets

question 43

Multiple Choice

Classify the gain or loss on each of George's assets listed below using the following codes. Note: a code may be used once, more than once, or not at all.
-After using a house as his personal home for 20 years,George converts it in 2006 to an office building for use in his construction business.He sells the building at a $65,000 loss in 2013.

• A)Long-term capital
• B)Short-term capital
• C)Collectible gain
• D)Section 1231
• E)Section 1245
• F)Section 1250
• G)Ordinary income/loss
• H)Nontaxable/nondeductible

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Definitions:

Skeletal System

The framework of bones and cartilages that supports the body, protects internal organs, and facilitates movement.

Osteons

Structural units of compact bone, consisting of concentric layers of calcified matrix and central blood vessels.

Compact Bone

The dense, hard outer layer of bone that gives it strength and houses the osteons and Haversian system for nutrient and waste exchange.

Osteocyte

A mature bone cell, encapsulated within the matrix, which maintains the bone tissue.